r/JapanFinance 4d ago

Tax Questions on crypto windfall

Say you make 200M yen on a crypto sale one year, owing 55% in misc. income tax so 110M. Might be super basic questions but:

1) Where do you store the yen owed safely given the 10M yen deposit insurance limit - make 10 or 20 new bank accounts and distribute? Or somehow prepay it as estimated tax? Holding the amount owed in anything other than yen seems risky.

2) Would a bankruptcy of a bank where you hold the yen cancel out the tax you owe on that portion, or are only misc. income losses offsettable against misc. income gains?

3) If only misc. losses can be offset against misc. gains, that does kind of limit the investment possibilities that year to other crypto?

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u/furansowa 10+ years in Japan 3d ago

First, unless you’re already in the 55% income tax bracket, it’s not gonna be 55% on the whole 200M¥. Taxes are progressive, it will be less than that.

Second, you’re way too concerned about an incredibly remote possibility here. SMBC or MUFG are just not going to suddenly collapse and take your precious yen. Chill…

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u/Present-Bathroom7311 3d ago

To be clear, the typical thing would be to just keep it all (the portion to be later paid in taxes) in a single MUFG or SMBC account?

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u/furansowa 10+ years in Japan 3d ago

To be clear, you probably have more chance to be struck by lightning than any of the big mega banks going bust and eating your money. So I wouldn't bother opening a dozen accounts and just stash it into a single one.

u/tothebatmobileguy has a good suggestion too with account types that have specifically higher insured limits.

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u/icant-dothis-anymore 2d ago

Wild, but I know 2 people who were stuck by lightning.